Libyan rebels today offered a £1m reward to capture Gaddafi as the hunt intensified to find the runaway leader.

The opposition council in Benghazi hopes that the sum will tempt members of Gaddafi's inner circle to turn him in. The rebels will have large amounts of cash available when Libyan assets are unfrozen and they have promised amnesty to anybody who captures or kills Gaddafi.

The offer came after the toppled dictator fled his palace in Tripoli and is believed to have escaped through a 2,000 mile network of tunnels running through the country.

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Raided: A rebel holds a Kalashnikov automatic rifle as he kicks over a sofa in the infamous Bedouin tent where Gaddafi carried out business deals

The deal in the desert: Prime Minister Tony Blair meets Gaddafi in the same tent that has now been ransacked. It is identifiable by the camel-lined fabric adorning its sides

Leaving behind a deserted mansion, Libyans rummaged through the forbidden home of the leader - even taking their children along to see the ruins of the fallen leader's home.

Rebels were pictured overturning couches and breaking up furniture in Gaddafi's Bedouin tent - the scene of his famous meeting with Tony Blair in 2004.

As fighting continued, a woman who said she was Gaddafi's only daughter, Aisha, told loyalist television channel Al Orouba today that
Libyans must unite against Nato and unite behind her father.

'I tell the Libyan people to stand
hand-in-hand against Nato,' she told the TV station by telephone. 'I
tell the Libyan people not to fear the armed forces.The leader is in the
right.'

Despite insistence from the Gaddafi
inner circle that they still have the upper hand in the war, the first
pictures emerged of rebels destroying the
luxury confines of Gaddafi's former compound.

Compound carnage: A rebel fighter sprays graffiti over an oil painting hanging over the luxury bed once slept in by the dictator before he fled the area

Inside the rat's lair: Rebel fighters rummage through Gaddafi's compound today. Sofas have been overturned and graffiti is scribbled on the walls

Free for all: A Libyan man holds his child as he celebrates among rebel fighters in front of Gaddafi's iconic gold fist statue

Rebel fighters look through an album they found inside Gaddafi's compound in Bab Al-Aziziya, Tripoli. Condoleezza Rice is seen on one of the pages

One
Libyan wearing army camouflage sprayed graffiti onto an oil painting
hanging above Gaddafi's bed. Lengths of wood from the ceiling collapsed
onto the mattress and glass in the room was smashed.

Elsewhere in the building, sofas in the Gaddafi clan's sitting room were overturned as men wandered through the different rooms.

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They found a treasured photo album featuring pictures of Gaddafi with
other world leaders. Former U.S. Secretary of State Condoleezza Rice is
seen on one of the pages.

In the grounds of the main compound,
jubilant Libyans celebrated alongside rebel fighters. One man even
brought his two young children along.

Burning: Smoke rises above one of Gaddafi's infamous Bedouin tents where he is reported to have slept surrounded by female bodyguards holding machine guns

Smile for the camera: Armed rebels take pictures in front of the iconic golden fist statue

The garden of evil: Rebel fighters rush into the leafy grounds where Gaddafi once strolled while plotting his tyrannical moves

Gaddafi last
night made a defiant speech from his hideout in which he vowed that the
fight against Libyan rebels would end in 'death or victory'.

In
a desperate attempt to dent the rebels’ morale after they had ransacked
his compound earlier in the day, he also claimed the withdrawal from
his Bab al-Aziziya fortress was merely a 'tactical move'.

'I
have been out a bit in Tripoli discreetly, without being seen by
people, and... I did not feel that Tripoli was in danger,' Gaddafi
said.

In a second statement, he pledged to turn Libya into ‘volcanoes, lava and fire’ - echoes of Saddam Hussein's parting shot in 1991 when he set fire to oil fields in Kuwait.

But the aggressive messages did little
to intimidate rebels who were fighting today in a southern area of the
city where Gaddafi may be hiding.

There was also heavy bombing of the
Gaddafi compound by government forces and clashes in the Abu Salim part
of the city.

Children of war: A young boy plays on top of a tank belonging to forces loyal to Gaddafi, which was captured by rebel fighters, in the city centre of Zawiyah

Cupboards are bare: Rebels stomp through one of the rooms in Gaddafi's home that appears to have once been used as a kitchen

Rebels use their AK47 assault rifles to smash through shutters and break into a living room at Gaddafi's palace

A rebel fighter climbs on top of Gaddafi's golden fist statue which he built after fending off U.S. airstrikes in 1986

'We think Gaddafi is still hiding somewhere in Tripoli. He is likely to be in the al-Hadhba al-Khadra area,' the official in Tripoli, who gave his name as Abdulrahman, said. 'There is fighting in the al-Hadhba al-Khadra area.'

In his radio address, Gaddafi also told residents they must
'cleanse' Tripoli of the rebels and free it from the 'devils' who have
overrun it. The beleaguered tyrant vowed victory or martyrdom in his
fight to remain in power.

Another
message was aired on two Arabic networks in which Gaddafi vowed 'to
clear the city of Tripoli and eliminate the criminals, traitors and
rats. They are hiding between the families and inside the civilian
houses. It's your duty to enter these houses and take them out. The
rebels will slaughter you and desecrate your bodies.'

He had been speaking to a Tripoli
radio station but his whereabouts after leaving the compound remain a
mystery.

The United States believes that he is still in Libya, Pentagon spokesman Colonel Dave Lapan said today.

Party atmosphere: Wearing Gaddafi's prized hat, an enormous gold chain and clutching his walking stick and wig, the rebel who broke into the dictator's bedroom celebrates alongside Libyans

Stamped out: Rebels trample on a bust of Gaddafi yesterday as they screamed chants claiming that they were going to get him

If the cap fits...: Colonel Gaddafi (left) pictured in military uniform
in 2009 and (right), a rebel proudly shows off the same cap after
ransacking the dictator's compound

The leader is believed to have escaped his compound in a 2,000 mile network of secret
vaults under the capital which lead to key buildings, airports and
military bases.

One of the underground tunnels is known to surface at the Rixos Hotel 1.5km away where 35 international journalists were trapped earlier but have since been freed. Another tunnel leads to the coastline while a third comes up at Mitiga Airport 7km away.

Blockades and checkpoints have been
set up around the capital, but if Gaddafi is able to leave Tripoli, he
could find a safe haven 500km away in the east in his home town of Sirte, from which scud missiles were fired at rebels yesterday.

Gaddafi
could also head 775km south to Sabha, his ancestral home, where he was
reported to have built nuclear bunkers in the 1980s. From there he could
travel through the desert or fly to neighbouring Chad, the country from
which he recruited hundreds of mercenaries.

There were also suggestions that he could travel west to Algeria although sources today suggest that he has remained in Tripoli.

Gaddafi rides in his golf cart earlier this year, and right, rebels wave their tricolor flag and joyride in the same vehicle that Gaddafi would have once used to drive around his now fallen compound

Stocking up: A Libyan rebel holds weapons taken from Gaddafi's Bab Al-Aziziya compound yesterday after the stronghold fell to the revolution

The tunnels were built by Western companies, however, few people have knowledge of the full extent of the network.

The 69-year-old's remaining forces are said to be heading for Sirte, raising the prospect of a bloody final showdown with the rebels.

There pockets of resistance today from government forces around the fallen compound and at the border with Tunisia. Pockets of motor and rocket fire were heard around Tripoli as die-hard Gaddafi loyalists with 'lots to lose' battled with rebels.

There were even fears that Gaddafi could unleash an arsenal of chemical weapons or poison the country's water supply.

Al Jazeera correspondent Evan Hill said: 'Explosions have been heard here and occasional gunfire. Rebels told me there are snipers about and that four people have been injured by gunshots.'

British journalists were among the foreign nationals who had been trapped inside the Rixos hotel by gunmen loyal to Gaddafi. The corporation's Matthew Price said he was one of around 35 foreigners, including journalists and politicians, who were inside the besieged establishment.

The hotel, which the regime has allowed international journalists to use, was the scene of Gaddafi's son Saif al-Islam's surprise reappearance earlier this week and has remained in the hands of those loyal to the dictator even as large parts of the capital fell to rebel advances.

A few miles away from the hotel a Maltese boat, Triva 1, has allowed British nationals fleeing Tripoli to board.

The Foreign and Commonwealth Office posted messages on its website and Twitter in the early hours to alert UK citizens remaining in Libya. It stressed it expects only a small number of British nationals to leave on the boat as most were evacuated during its own operations.

The FCO continues to advise anyone remaining in Libya to leave, warning of the possibility of retaliatory attacks from pro-Gaddafi forces as a result of the international intervention.

Foreign Secretary William Hague has called on Muammar Gaddafi to recognise his 42-year rule over Libya was over and stand down his forces.

Mr Hague insisted the Libyan people had delivered a 'decisive rejection' of the dictator and dismissed his vow to fight on as 'delusional'.

'I think it is time now for Colonel Gaddafi to stop issuing delusional statements,' he said.